Importing Goods and Wholesale Products into United States

Most people would agree that the most difficult part of importing merchandise is the bureaucratic nightmare that goes with it. We’ve all heard the horror stories of outrageous duties being charged, goods being confiscated and so on. So, in this post, we’re going to try and clear up some of the mystery by de-jargonizing the requirements.

Remember that if you don’t want to handle customs yourself, you can use a Customs broker who will clear goods through customs on your behalf and take care of all the technicalities.

Do I need to meet any requirements before I can import goods into the US?

You don’t need a license to act as an importer but you will need a business tax number, which you’ll have to get through the IRS. This is the number you put on all customs paperwork that requires an ‘importer number’.

Note that there are some items that require a license or permit from various government agencies in order to be imported, e.g. plant, animal or dairy products, medications, trademarked and copyrighted material and so on. See the customs website for more information.

What does the US Customs procedure involve?

Customs is a two-part process: (1) filing the documents necessary to have your products deemed able to be released and (2) filing the documents that contain information for duty assessment. Both of these processes can be completed electronically via the Automated Broker Interface program of the Automated Commercial Systems.

When your documentation is presented, customs officials decide whether or not it is necessary to examine the shipment. If your goods are examined, officials will check that no legal or regulatory violations have occurred and then release your goods.

What are Customs officials looking for when they examine my shipment?

The value of the goods for customs purposes and to check whether duties apply.

Whether the goods need to be marked with country of origin or require special marking. If this is lacking, they are then marked to meet regulations.

Whether the shipment contains prohibited articles.

Whether the goods are correctly invoiced.

Whether the goods are in excess of the invoiced quantities or a shortage exists.

Whether the shipment contains illegal narcotics.

Goods are cleared much faster if:

Invoices are clear and contain the information that would be shown on a well-prepared packing slip.

Each package is marked and numbered so it can easily be identified against the invoice.

A detailed description of the merchandise in each package is on the invoice.

The country of origin is clearly marked.

Any special laws that apply are complied with. Merchandise such as food, drugs, cosmetics, alcohol and so on will usually fall into this category.

Your supplier maintains good security, reducing the risk that narcotics smugglers are able to introduce narcotics into your shipment.

Duties, Tariffs and all the rest….

All goods imported into the United States are subject to duty or duty-free entry depending on their classification in the Harmonized Tariff Schedule of the United States. The full tariff schedule is quite a hefty document about the size of a dictionary! You can purchase an annotated loose-leaf edition of the tariff schedule from the U.S. Government Printing Office, Washington, DC 20402.

The easiest way to find out what you may be charged is by searching for tariffs online at http://dataweb.usitc.gov/. You’ll need to create an account before you can search, but it’s totally free to do so.

There are three types of duties that may be charged: ad valorem, specific, or compound rates. An ad valorem rate is a percentage of the value of the merchandise, such as 5% ad valorem. This is the rate most commonly applied. A specific rate is a specified amount per unit of weight or other quantity, such as 5.9 cents per dozen. A compound rate is a combination of both an ad valorem rate and a specific rate, such as 0.7 cents per kilo plus 10% ad valorem.

Rates of duty for imported merchandise can also depend on the country of origin. When referring to the Harmonized Tariff Schedule, you’ll notice two different columns: General and Statutory. Most goods are covered by the General column (column 1) if they are from what is known as ‘most favored nations’, that is, countries with a trade agreement with the US. Goods from countries to which these rates have not been extended are dutiable at the full or ‘statutory’ rates (column 2).

So am I likely to have to dig deep?

Generally, importing costs from China to US are very reasonable. While the figures always look frightening in documents such as the HTS, you’ll usually find that the tax is very low unless your item is unusual or restricted in some way. Another tip is to stay away from designer replicas as these are subject to more scrutiny and may cause Trade marking and Copyright issues.

If you are particularly worried about getting started, I suggest only importing small lots until you feel more confident with the process. Customs are primarily interested in very large orders and small parcels valued under $1,000 are usually waved on through.

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Enjoyed this post? Please share it.

Posted by
on 18:00 8 Aug
More a question than a comment. Do you have any tips about importing to the Caribbean and more specifically, into Trinidad? Reply

Posted by
on 23:13 8 Aug
Not currently but thanks for the suggestion :) We'll consider adding some info about this to our resource area. Reply

Posted by
Lisa on 19:23 3 Aug
Good article! What do you think the average cost would be for importing from Thailand to the US?
Thanks,
Lisa Reply

Posted by
john on 22:55 20 Dec
what are the costs involved and procedures to follow to ship from southwest china to usa? Reply

Posted by
Wholesale on 9:15 6 Jul
Thanks for sharing such info with us! USA tariff plan has changed, do you think it will affect the import export or not?
www.wholesalepages.co.uk Reply

Posted by
richelle monfort
on 3:22 7 Jul
@Lisa: It would difficult to say. Usually shipping charges will depend on the packages size and weight. Plus rates will vary from one shipper to the next. Try searching Google for a shipping calculator just so you can do a sample costing
@John: Again the size and weight will play a factor in the shipping cost. I think you'll find this guide fairly useful, http://www.salehoo.com/education/importing-shipping/importing-into-the-us-papers-procedures-duties
@Wholesale: a change would generally affect the entire trading scheme may it be import or export. What specific changes are you referring to?
Cheers Guys! :) Reply

Posted by
play solitaire online on 11:09 7 Sep
Thanks for sharing this link, but unfortunately it seems to be offline... Does anybody have a mirror or another source? Please answer to my post if you do!
I would appreciate if a staff member here at www.salehoo.com could post it.
Thanks,
Jules Reply

Posted by
richelle monfort
on 23:40 7 Sep
Hi Jules,
Which link are you referring to? Kindly specify so we can assist you accordingly. Cheers :)
Reply

Posted by
Sam on 6:55 8 Oct
Hey Richelle,
Thanks for your advice. I have four small quick questions?
1. How much weight in pound can we import as individual, not as business entity.
2. Is there any list of products with amount of duty posed on it or any duty calculator available?
Reply

Posted by
richelle monfort
on 1:15 11 Oct
Hi Sam,
I can only see two questions :) But I'll try to address them to the best I can.
Its hard to say or give you the weight in pounds since it varies on the type of product as well as the type of duty being imposed. The easiest way to find out what you may be charged is by searching for tariffs online at http://dataweb.usitc.gov/.
Also, please visit this link for more tips and useful links:
http://www.salehoo.com/education/importing-shipping/importing-into-the-us-papers-procedures-duties
Hope this helps. Reply

Posted by
Blanca on 0:17 27 May
I have a trucking business, how do I get access to the ports? I'm interested in moving containers in and out.
Reply

Posted by
Irene Vallejo
on 7:31 27 May
@Blanca: See the list here :) http://www.cbp.gov/xp/cgov/toolbox/contacts/ports/ Reply

Posted by
crg on 14:42 27 Jul
I need to import some goods from China. How do I get a list of custom brokers that can help me with it? The port of entry will be Houston, TX. Reply

Posted by
bahoombie on 21:57 12 Jan
Hi, I have some goods from China and I want to try to use freight by sea. How long does it take and what do I need to do? What are the lists of customs broker in my area since I don't live near the port, i am from Arizona , the closest port would be in California, what are my options ? Thanks. Reply

Posted by
Irene Vallejo
on 1:05 13 Jan
@bahoombie: Kindly refer to this post http://www.salehoo.com/education/importing-shipping/china-importing-logistics-and-storage The best way to find out how much you have to pay is by visiting your country’s customs website, and for USA - http://www.customs.gov Hope this helps. :) Reply

Posted by
Ron Fitzsimmons on 18:23 28 Jan
I am looking to import from China 500-5,000 mobile phone screen cleaners at a time, a few times a month. They are very lightweight. Is there anything on my end that I need to know about? I.e., do I need to contact customs, worry about tariffs, etc.? Thanks, this is a great site! Reply

Posted by
param on 19:06 28 Jan
Hi, I have some goods like textile, fabrics, steel items from India. how can i import them to USA. what is the process to be followed ? What is my first step , whom should I reach out for ? please give me more details...
Thanks.. Reply

Posted by
Irene Vallejo
on 3:20 30 Jan
@Ron: Yes, I believe you need to get as much information as you can before actually importing such bulk orders. :) As mentioned, the easiest way to find out what you may be charged is by searching for tariffs online at http://dataweb.usitc.gov/ and getting in touch with Customs http://www.customs.gov/ Reply

Posted by
Irene Vallejo
on 3:23 30 Jan
@Param: Same advice as above, check for the tariffs online at http://dataweb.usitc.gov/ and get in touch with Customs at http://www.customs.gov/ Reply

Posted by
Vallae Rama Rao. on 11:45 21 Nov
I like because it is useful to understand the tariffs online and the customs procedures. Reply

Posted by
Shipping from USA to Canada on 10:42 28 Mar
Thanks for giving useful information about export and import and also reminding us with the shipping charges...Keep sharing..
Reply

Posted by
KrazyKonga
on 20:49 23 Feb
I am trying to remember and find out the name of a certain "Act" when importing goods into the US. Is there a place where I can look into the different "Acts" that are involved with importing. Reply

Posted by
Rod on 17:44 14 May
Hello, I have very little knowledge, if any, about importing food products from international market. The idea is to bring dairy products like ice cream made of dry milk & also ice cream made of sugar & flavored water. Other products would be condensed milk & a substance that is similar to condensed milk. The products are coming from Chile, South America. My question is, where do I begin to investigate how to bring this products into the United States. Should I contact a food distributor to penetrate & find exposure into the market?
I have been given this opportunity by a family member to distribute through the United States but I honestly have no clue what or where to begin. Any feedback would be appreciated. Reply

Posted by
stuart
on 13:41 18 Jun
hi,ive met a fashion sales agent in the usa who wants to import my fashion line for girls,womens garments and leather sandles from indonesia. what do i need to do ? do i need an import brocker in dallas as thats the destination. what import duties must i pay. any info to progress my situation would be appreciated. Reply

Posted by
Sam
on 12:04 23 Jun
Hi ,Do I need work permit/ passport /visa "as I am overstaying my visa and I don't have work permit! " to start sending cloths to customers as an online cloths shop? & are the cost of shipping worth to send t-shirts ,suit ext. to euro or other countries from Bangkok? thank you Reply

I don't think a working permit or visa is required for you to send clothes out of Bangkok. The risk there is a possible run in with the authorities, so as an overstaying foreigner that might get you in trouble.

Posted by
ritu rana
on 14:01 14 Nov
hello,
I am planning on importing handicraft made of wood and MDF(mirror frames , wall panels, photo frames etc) from india l. What would be the duty on these items and can I pick my lot in Chicago? Reply

I can't actually tell you what the duty will be. It depends on what exactly you import, I think. I'm not sure what you mean by picking your lot in Chicago. Can you elaborate? Reply

Posted by
Manoj
on 2:52 26 Jan
I am plannig to import some packaged food items non-dairy, non-meat. It is kind of snacks. Is there any specific label requirements for any good products to bring this to USA? If yes, where I can find more details?

Also, if I need to bring some samples not like 20-30 pounds, do I need to go thru customs? Reply

Posted by
Mike on 21:59 6 Feb
its a great and useful site on importing into U.S..One more question..I know you answered it but i am confused with other comments that i read in other sites..Thing is, I am planning to start online portal and planning to import(sell) from India to USA..I know you said i need to open the business tax number but i am not a citizen of USA and i will be going back to India after few months..Could you please tell us(me) do i need to stay here to start my online business and sell the products fro m india...also could you please tell more on tax related info end of each year and every product i sell.. Reply

Honestly, I am not sure. Businesses are registered at the state level so I think part of it depends on what state you're in when you start the business. If you have a base of operations in the States, it's considered a nexus and you have to deal with sales tax.

I would speak to an accountant or attorney. They can help you best, especially since I don't know the specifics of your circumstances. Reply

Posted by
Raymond Aleks on 13:13 13 Mar
Dear SaleHoo Representative;

I would like some advise in importing an herbal balm / ointment product from Thailand. This product I would say
is similiar to Tiger Balm, used for pain relief and inflamation. Any suggestions concerning FDA, etc? Reply

If nothing else, you might try googling "import [product] to US" and see what the results are and see what others have to say on the subject. Or talk to an imports expert. Reply

Posted by
Rugi
on 1:39 4 Apr
I want to import plastic thermoware/hotpots casseroles from India. Is there a restriction on this. Reply

Posted by
Harold Bieber
on 16:10 29 Sep
I am looking to import items from Vietnam and I was wanting to do it buy bulk and by sea, How will I find out what it will cost me to do this I am around 2 hour away from the port. I also would used a import broker to do all the paper work I hope. I would like to see it hit land be off loaded and moved inland ASAP do you think this could happen. Reply

Your best bet is to talk to a customs broker or a freight company directly. Without knowing what products you're bringing in and how much, where you're storing goods, etc., I simply can't give you a good idea of what to expect. Your supplier may also be able to help -- though this certainly isn't true of every supplier.

Have a question on exporting products from Indonesia example, unions, oranges, green pepper ext.. does the port of Brownsville do the import of products? Reply

Posted by
Melissa Johnson
on 21:40 1 Mar
Hi, Joe -- Yes, you can import items through Brownsville. However, I am not able to locate specifics of what is or is not allowed. You'd be best talking to either the port or your shipping company, or a customs broker, about it! Reply

Posted by
Caroline Ernest
on 16:57 11 Mar
I appreciate the information received. Thanks much looking forward to continued relationship. Reply

Posted by
Redo on 22:34 8 Jun
Hi,

I want to Import product form China. How to know that product is not patented. Also If no patent on product can I bring in any available packaging or I have to have my own brand? Reply